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April 2010 – New Case Provides a Template (and a Warning) for Avoiding “Alter Ego” Status

February 14th, 2013

The United States District Court for the Southern District of California has recently provided practitioners with a roadmap for avoiding having the activities (and the assets) of one entity conflated into a sister entity by means of the “alter ego” theory. Failure to prove “alter ego” is particularly crippling to a creditor if there is personal jurisdiction over one entity but no jurisdiction over the sister entity that has the deep pocket.

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